PROJECT MANAGEMENTPrepared by

Kashfiya AfrinLecturer

School of BusinessBAC

What is Project?An undertaking that has a beginning as well

as end and is carried out to meet established goals within cost, schedule and quality objectives

Characteristics of a ProjectSpecific start and end pointWell defined objectiveUnique & non repetitiveCost & time scheduleCross functional team

Unique Features of Project MgtTeam WorkExpected ProblemUnexpected ProblemDelayed BenefitContribution of SpecialistsParties with Different Interest

Why Projects Go Wrong?Difficulty in estimating project durationUnderestimated costsChanges in client specificationLack of coordination and team workDifficulties in managing unexpected problems

Objective of Project MgtQualityBudgetTime Scale

Project Life CycleConceiving & defining projectPlanning the projectProject implementation & controlCompleting & evaluating the project

Project Life CycleConceiving & defining projectPlanning the project Break down into manageable unitsEstimation of resource needed (material,

money, time, labor etc.)Project implementation & controlCompleting & evaluating the project

Work Break Down StructureDiscovering work that must be done in the

projectDetermining resources requiredSequencing work

Estimation“An accurate estimate of project costs provides

a proper basis for management control” -Dennis Lock

Estimation (Cont…)Estimates can be improved byLearning from past mistakesObtaining sufficient design informationEnsuring customer specification as detailed

as possibleAnalyzing properly

Cost EstimationBased on 2 componentsDirect Cost (Labor, material, sub components

etc.)Overhead Cost (Heating, lighting, utilities

etc.)Material requires 2 types of estimationTotal material cost (Design engineers,

procurements etc.)Lead time for receipt

Job Time EstimationEstimated time, te={(to+4tm-tp)/6} Here, to=the most optimistic duration (shortest

time) tm=the most likely duration tp=the most pessimistic duration (Longest

time)

Network AnalysisTechnique for planning & controlling large

projectsConstruction workR&DComputerization of a systemAlso known as Critical Path Analysis (CPA) or

Critical Path Method (CPM)

Advantages of Network AnalysisHelps to plan when to start tasksHelps to allocate resources properlyHelps to monitor progressHelps to control

Network DiagramRepresents events & activities (along with

their sequence) making up a whole projectFlow of activities: Left to rightArrowed lineNode

Critical PathIt is the path through the network with the

greatest total durationActivities on it are called critical activitiesA network can have more than one critical

path.

Example: Critical PathThe following activities comprise a project to

renovate a block of flats.

Example: Critical PathActivities Preceding

ActivityDuration(Weeks)

A: Replace windows in lounges - 5

B: Rewire - 4

C: Re-plaster walls of lounges A 2

D: Fit lights in lounges B 1

E: Decorate the bedrooms B 5

F: Install Plumbing B 5

G: Decorate lounges C, D 4

H: Decorate kitchen F 3

I: Decorate Washroom F 2

Example: Critical PathWhat are the paths through network?What is the critical path and what is its

duration?

TextBusiness Decision Making by Pipa Riley Chapter 10: Project Mangement Tools &

TechniquesProjects: Planning, Analysis, Selection,

Financing, Implementation & Review by Prasanna Chandra

Edition: 7th

Chapter-21: Project Management

Thank You!